1362.45 -3.04 (-0.22%) Sell

Search for alternative investments is on for NILKAMAL investors as it ranked worse than it's peers

13 min read

NILKAMAL LIMITED delivered lacklustre performance on Friday. It fell by -0.22% to close at 1362.45 which is it's 52 week low, down -31% from it's 52 week high.

[Themes containing NILKAMAL]

Buy-and-Hold investors in NILKAMAL experienced a maximum drawdown of -18.11% over the last three months. It fell by -13.24% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +13.24% for investors.


NILKAMAL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 11 May, 2017 to 18 Jan, 2019. One must note that NILKAMAL is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, NILKAMAL underperformed the NIFTY-50 index on 55% days.

NILKAMAL returned losses on 64% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's best daily return of +5.46%, during this period, on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 11 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -5.89% of investor capital.

During the last year NILKAMAL had 4 profitable months and 8 loss making months. NILKAMAL returned profits in fewer months than NIFTY-50 index. NILKAMAL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.66% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NILKAMAL had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -31.92%. It is interesting to note that both NILKAMAL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Greed is not a financial issue. It's a heart issue.
-- Andy Stanley

NILKAMAL is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in NILKAMAL's volatility from 23 Oct, 2018 to 10 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that NILKAMAL has significant negative skewness in it's return distribution. This indicates that NILKAMAL is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than NILKAMAL. Therefore, NIFTY-50 must receive a lower allocation than NILKAMAL in your portfolio. NIFTY-50 index usually has shorter drawdown period than NILKAMAL.

Based on your interest in NILKAMAL you may find it interesting to know that IGARASHI is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to IGARASHI or sufficiently diversifying your portfolio.

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